Mobile payments service provider Square is a forthcoming technology initial public offering that's red-hot right now. With the suave and talented Jack Dorsey as its CEO and co-founder, it's deceptively easy to fall for this "high-growth" story.

However, there's more here than meets the eye. You hang onto your dollar a while longer. Here are three reasons why.

1)Sharing a CEO With Twitter Is a Bad Idea.

Square's future success is significantly dependent upon the continued service of its top executives and other key employees. There is no one bigger than 38-year old Jack Dorsey, who also serves as chief executive officer for Twitter. Now this is a strange marriage.

As the company admits even in its IPO document, "this may at times adversely affect his (Dorsey) ability to devote time, attention, and effort to Square." In the highly competitive mobile payments service industry, Square must compete with the likes of biggies such as Apple, Google, PayPal, Amazon, Intuit, Verifone and Etsy. Consequently, you'd want a CEO who is striving for growth and performance 24/7.

You could argue that Elon Musk is running Tesla and SpaceX, but sharing CEOs isn't really the prescribed model for running a company. As things look now, Dorsey will probably shift out soon, as he begins to sharpen focus on making Twitter profitable

2) The Imminent End of the Starbucks Deal

In the third quarter of 2012, Square signed an agreement to process credit and debit card payment transactions for all Starbucks-owned stores in the U.S. The agreement was amended in August 2015 to eliminate the exclusivity provision (in order to permit Starbucks to begin transitioning itself to another payment processor starting Oct. 1, 2015).

Under the amendment, Starbucks also agreed to pay increased processing rates to Square for as long as transactions continued.

Square anticipates that Starbucks will cease using Square payment processing services prior to the scheduled expiration of the agreement in the third quarter of 2016.

Now this is very important, because 1) Square cumulatively lost nearly $80 million on Starbucks transaction processing alone; 2) The company has yet to show material gains in its efforts to ramp up new paid services to compensate for the lost revenue from Starbucks (65% of the total pie in 2014); and 3) The failed Starbucks deal shows that Square is unfortunately only a small-business focused payment processor.

If you could not make money from serving enterprise clients, where is your scalability? An Achilles' heel, for sure.

3)Headwinds and Predicaments

Before the IPO buzz, Square, according to reports, raised almost $600 million in five years. Its valuation hit the $6 billion mark in its last funding round.

And now it seeks your money. Why? The company says it intends to use the net proceeds from this offering primarily for working capital and general corporate purposes. It also may use a portion of the net proceeds from this offering for acquisitions of complementary businesses, technologies or other assets, but hasn't entered into any agreements or commitments with respect to any specific acquisitions.

A little too much fluff, don't you think?

The real reason could be that its investors have no interest in paying sky-high valuations for a company that is facing severe competitor heat and is burning cash at a high rate.

When Apple Pay goes mainstream, Square is likely to face even bigger challenges. From a pure valuation basis, if the IPO is priced at $18-$20, Square could be valued at a price-to-sales ratio of 5 to 7. (Revenue for 2014 rose 54%, but the net loss also widened by 47%.)

In short, the writing's on the wall. Ignore the hoopla and bypass this Square, until it comes full circle.

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This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.